Suggestion on short term contract what to do...???

**VectraMan** · 7 November 2006, 21:20

Six months isn't short term; six months is the typical length of contracts.

Ltd. is always best. If you're dipping into contracting and don't expect to continue, then an umbrella will be less hassle, but will cost you more.

**bsnapool** · 7 November 2006, 22:01

Thanks for your reply.. A difference of opinion is always good...

I want to go with a limited company, I have the forms to sign here but what other hassles is there after the initial set up?

**MarillionFan** · 7 November 2006, 22:04

"what other hassles is there after the initial set up?"

Hassles? Stick with perm work m8, doesnt sound like you're cut out for contracting.

**bsnapool** · 7 November 2006, 22:36

Bit late for that, as I have just accepted one.

Let me put that sentence another way...

What other issues need to be addressed on a monthly basis???

**Sockpuppet** · 7 November 2006, 23:04

Originally posted by bsnapool

Bit late for that, as I have just accepted one.

Let me put that sentence another way...

What other issues need to be addressed on a monthly basis???

getting paid, running payroll, filing reciepts for expenses talking to the bank / accountant. Looking for your next contract.

**hattra** · 7 November 2006, 23:05

Originally posted by bsnapool

Hi there

I have read lots of posts about umberella, composites and ltd's.... But nothing really has cropped up about short term contracts (6 months)... This is my first contract, will be there minimum 6 months, what would people suggest i do???

I am thinking a ltd as I will fall short of the £40,000 tax increase??

I know this will sound repetive to all regulars but any assitance would be really helpful...

Thanks in advance..

Andrew

Umberellas are convenient, but if you only do the one assignment with them, you could get caught for tax

**bsnapool** · 7 November 2006, 23:10

Its a nightmare decision!!! Im in 2 minds whether to go down two routes!!

Ltd

Reason being tax, but Im not sure whether i will decide to take on another contract at the end of this one

Umberella

If this is the only contract I do I shall be stung by the taxman.

Any other suggestions people??

Circumstances.

6 month contract, not going to be looking for a contract at the end of this one.

**bsnapool** · 8 November 2006, 10:23

Any suggestions???

**LisaContractorUmbrella** · 8 November 2006, 10:33

Originally posted by bsnapool

Its a nightmare decision!!! Im in 2 minds whether to go down two routes!!

Ltd

Reason being tax, but Im not sure whether i will decide to take on another contract at the end of this one

Umberella

If this is the only contract I do I shall be stung by the taxman.

Any other suggestions people??

Circumstances.

6 month contract, not going to be looking for a contract at the end of this one.

If this is likely to be your only contract and it will fall inside of IR35 you would be better off using an umbrella company (not biased honestly!). If you are inside IR35 you will be paid via PAYE which means that your tax liabilities will be accounted for as you go along rather than at the end of the financial year. Again, if you are inside IR35 your tax liabilities will be more or less the same whether you go the Ltd route or the umbrella route - the only difference is a 5% allowance that you receive through a Ltd. You should bear in mind that, if you are inside IR35 you will be liable for both employees and employer's national insurance but, again, you will have this cost whether you go Ltd or Umbrella. Your first step should probably be to have your contract assesed so that your IR35 status can be determined.

Suggestion on short term contract what to do...???